KINGSTON, N.Y. -- Mayor Shayne Gallo said Tuesday that without a 1 percent sales tax extension the city stands to lose $3 million in revenue, which would seriously impact property taxes.

"It portends financial ruin for the city of Kingston," Gallo said Tuesday.

Gallo laid the blame squarely at the feet of Assemblyman Kevin Cahill, D-Kingston, who has insisted that Ulster County meet certain conditions before he'll agree to the 1 percent sales tax extension, which would allow Ulster County to charge an 8 percent sales tax for another two years.

"Simply put, the assemblyman's inaction will result in many, many, many for sale signs on property throughout the city," Gallo said. "The assemblyman is shifting the burden from the sales tax to the property tax. It is very disappointing given the fact that the assemblyman was born and raised in the city which he represents."

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Gallo's comments come after Ulster County Executive Michael Hein said Monday that was preparing to deal with what he called the "Cahill crisis."

Hein said the county stands to lose an anticipated $22 million in sales tax revenue if the extension is not approved by state lawmakers by Dec. 1. Without the extension, the sales tax in Ulster County would be 7 percent.

Earlier this year, Assemblyman Frank Skartados, D-Milton, submitted a bill to approve the extension with no strings attached.

On June 11, Cahill introduced three bills to the Assembly Ways and Means Committee that duplicate Skartados' bill but make the extension conditional on Ulster County assuming the cost of all local elections in the county and assuming the entire local share of the Safety Net welfare program starting Jan. 1, 2015.

Gallo said his administration is preparing a so-called memorializing resolution objecting to Cahill's stance on the sales tax matter that is to be submitted to the Common Council for a vote at its next meeting on July 2

"The assemblyman never contacted my office nor the City Comptroller John Tuey to discuss the impact of the sales tax not being extended," Gallo said.

Gallo also said that changes in relation to a Safety Net deal arranged by Ulster County Executive Michael Hein could have a $2 million immediate impact, bringing the total to $5 million.

Gallo said it could also force 20 to 40 layoffs.

Alderman Thomas Hoffay, D-Ward 2, who works in Cahill's office and is majority leader of the Common Council, said memorializing resolutions are of no effect.

"What good would a memorializing resolution do at this point?" Hoffay said. "It is a matter that the finance committee will have to deal. ... It is not going to be an easy thing but it is something we will have to adjust the budget on."

The county has assumed one-third of the municipal share of the Safety Net program, but has held off on its earlier promise to take over the entire share, citing budget concerns.